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Buying a House: Delivery of the Property 1

Posted by Ken Hayashi on 12/16/2023

Important Points to keep in mind until moving in.

After signing the contract, you should know about the points to check and the process of delivery.


Point 1: Pre-move-in viewing to check the finish.
 Newly built houses

In the case of a newly built house, a preview is held to check the finishes of the completed house before delivery. Here are two points to check.

The first thing to check is that the finishes are in accordance with the contract and specifications. Make sure that the interior materials, fittings, housing equipment, etc. are in accordance with the contract.

Next, check the “state of finishes. Check to see if the fittings open and close smoothly, if the edges and joints of the walls, flooring, ceilings, etc. are properly treated, and if there are any scratches. If any defects are found, request that they be repaired before the delivery.

​If there are no problems, the preview ends with the signing and sealing of a document stating that you have checked the condition of the house and its finishes. However, once you have signed and sealed the document, responsibility for any problems that may be pointed out afterwards tends to become ambiguous. Before signing and sealing the documents, make sure to check them thoroughly at the preview.

Existing houses
In the case of an existing house, in some cases, the seller or the real estate company will be present to check the site before the delivery date. Make sure that the condition of the property is in accordance with the terms of the contract, such as whether the promised repairs, etc. have been completed and whether there are any incidental facilities that are to be taken over. If the seller has given you a notice (report on ancillary facilities and property condition), check based on it


Point 2: What if there is a delay in moving or some other discrepancy with the terms of the contract?

It is possible that the construction period will be extended and the property will not be completed by the delivery date, that the seller who is residing in the property delays moving out, or that the vacating of the property is delayed due to the delay in the vacating process of the property where the tenant is moving, etc., In such cases, the property will not be delivered according to the contract. As a buyer, you will be in trouble as well, as you have already made arrangements to move out and have a fixed date to vacate the rental housing in which you are living.

Thus, if delivery cannot be made by the date agreed upon in the contract and there is no prospect of delivery at all, one option would be to claim cancellation of the contract on the grounds of the seller’s default of contract (breach of promise). If you find that the seller is in default (not executing the contract), not limited to a delay in delivery, you need to determine whether the seller is likely to be able to execute what was promised in the contract and whether the other party is responding in good faith, and then decide whether to take practical measures such as postponing delivery or canceling the contract.

On the other hand, if there is a slight delay in delivery, measures such as compensation for expenses incurred due to the delay in delivery may be considered. First, consider how to respond to the situation with the real estate company.


Point 3: Settle the balance at the time of delivery
Upon delivery, the buyer prepares the balance due, various expenses, and necessary documents. Before the time of delivery, please check with the real estate agency to ensure that nothing has been left out.
Items to be provided by the buyer at the time of delivery

(1) Examples of money to be prepared

  • The balance of the property price
  • Settlement of property tax and city planning tax
  • Settlement of utility charges, etc.
  • Settlement of management fees, etc.
  • Registration fees (registration and license tax, fees to judicial scriveners, etc.)
  • Balance of brokerage fees paid to the real estate company

(2) Examples of required documents to be prepared

  • Certificate of residence (for application for registration)
  • A letter of attorney (for application for registration)

*If a mortgage loan is taken out, a certificate of seal impression and a letter of attorney are required for the establishment of the mortgage.

If the remaining balance is to be covered by a mortgage, preparations for loan execution should not be neglected. The seller, buyer, real estate company, financial institution representative, judicial scrivener, and other related parties will be present at the delivery of the property.

Then, generally, the loan is executed, the balance is settled, and application for registration (cancellation of the seller’s mortgage, transfer of ownership from the seller to the buyer, and establishment of the buyer’s mortgage) are made at the same time. If any one of these procedures is incomplete, there is a risk that the settlement of the balance and delivery of the property will not be completed, so it is important to pay close attention to these procedures.

After the settlement of the balance is completed, the buyer will receive the keys and the delivery will be completed.

Settlement and Delivery Process

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    497 Kyogoku-cho,
    Shimogyo-ku, Kyoto


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